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This year state nation adress by President Zuma


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This year state nation adress by President Zuma

  1. 1. This years state of the nation address takes place at a special time when theANC celebrates its centenary and the South African constitution turns 16, saidPresident Jacob Zuma today.FULL SPEECHThis State of the Nation Address takes place during a significant year in the history of ourcountry, the centenary of the ruling party, the African National Congress.In marking this occasion we are recognising the work of all South Africans in bringing about atruly free, non-racial, non-sexist, democratic and prosperous country.We wish to single out the former presidents of the ANC who led our struggle for liberation andof creating a better life across generations. We salute John Langalibalele Dube, SefakoMakgatho, Zac Mahabane, Josiah Gumede, Pixley ka Isaka Seme, AB Xuma, JS Moroka, ChiefAlbert Luthuli, Oliver Tambo, Nelson Mandela and Thabo Mbeki.We welcome the families of the former ANC Presidents who are our special guests this evening.We also recognise other components of the liberation movement - the Black ConsciousnessMovement which was led by Mr Steve Biko, whose son Samora is also our special guest, and thePan-Africanist Congress which was led by Mr Robert Sobukwe.We acknowledge too, the contribution of the late former MP, Ms Helen Suzman, who was alone voice in this very House, speaking out against oppressive laws.Honourable Members,Compatriots and friends,
  2. 2. The year 2012 is also special because it marks the 16 anniversary of the Constitution of theRepublic, which gives full expression to our democratic ideals.The Constitution is South Africa’s fundamental vision statement, which guides our policies andactions. We reaffirm our commitment to advance the ideals of our country’s Constitution at alltimes.Compatriots and friends,At the January Cabinet lekgotla, we decided to undertake a mid-term review, looking at progressfrom 2009 till now instead of the usual annual review.The mid-term review indicated steady progress in various areas such as health, education, thefight against crime, human settlements, energy, water provision, rural development and others.However, the triple challenge of unemployment, poverty and inequality persists, despite theprogress made. Africans, women and the youth continue to suffer most from this challenge.Somlomo nosihlalo abahloniphekileyo,Njengekhabhinethi kazwelonke sithathe isinqumo sokuthi kufanele senze ngokwedlulele,ukukhulisa umnotho wezwe, ukuze siqede lezizinkinga zokwesweleka kwemisebenzi, ubumpofukanye nokungalingani ezweni.Ilezo zinto ezintathu esizobhekana nazo ngqo, kulonyaka naseminyakeni ezayo.Compatriots,When freedom was attained in 1994, South Africa inherited a problem of structuralunemployment which goes back to the 1970s. Employment continued to deteriorate in the 1990sand the early 2000s due to slow growth and declining employment in gold mining andagriculture.Although jobs grew rapidly during the boom of 2003 to 2008, unemployment did not fall below20%.Employment received another setback in the recession of 2009.Fortunately, Government entered the 2008-2009 recession with healthy public finances, and acomparatively low level of debt.This allowed for a flexible response to deteriorating economic conditions.For example, we increased spending on social security and on infrastructure development tostimulate the economy, mainly through the 2010 FIFA Soccer World Cup build programme.
  3. 3. Informed by some of these difficulties and the need to move away from piecemeal planning, wetook a decision in 2009 to establish the National Planning Commission and asked them toproduce a national development plan for the country, informed by the Constitution of theRepublic.The Commission released the first draft of the National Development Plan for consideration,which looks at where we want to be in 20 years’ time.The Plan also directly addresses the elimination of poverty and inequality as critical points thatmust be attended to.The solution for the country therefore, is higher growth and job creation to reduce and ultimatelyeradicate poverty and inequality.As a developmental state that is located at the centre of a mixed economy, we see our role asbeing to lead and guide the economy and to intervene in the interest of the poor, given thehistory of our country.Informed by this responsibility, in 2010 we launched the New Growth Path framework andidentified our job drivers as infrastructure development, tourism, agriculture, mining,manufacturing and the green economy.We declared 2011 the year of job creation, and mobilised our social partners, namely business,labour and the community sector, to work with us in implementing the New Growth Path.The results are encouraging, although we are not out of the woods yet, given the global economicsituation.The fourth quarter figures released on Tuesday, indicate that the rate of unemployment has comedown from twenty-five percent to 23.9% as a result of new jobs.During 2011, a total of 365 000 people were employed. This is the country’s best performancesince the recession of 2008.What is also important is that all the new jobs are in the formal sector of the economy, in sectorssuch as mining, transport, community services and trade to name a few.There are two main things that we did right in 2011 which are contributing to this joint success.Firstly, we mainstreamed job creation in every government entity including state ownedenterprises.Secondly, we strengthened social dialogue and cooperation between government, business andthe community sector.
  4. 4. The Accords, signed by government, business and labour on procurement, skills development,basic education, and the green economy, confirm our common purpose and determination tobuild this country.Government alone cannot solve the challenges faced by the country, but working together,solutions are possible.Compatriots,Let me take this opportunity to report back on the undertakings made in the SONA last year.The Job Fund which we announced last year began operating in June. Over 2 500 applicationswere received in the first round. Project allocations of over one billion rand have beencommitted.We had also announced 20 billion rand worth of incentives under Section 12(i) of the IncomeTax Act, designed to support new industrial projects and manufacturing, and seven projects withan investment value of 8,4 billion rand were approved.The procurement regulations empowering the Department of Trade and Industry to designatespecific industries where local content is prescribed came into effect in December.The sectors include clothing textiles, canned vegetables, leather and footwear.Progress has also been made in amalgamating small business institutions, and a new entity willbe launched this year.We had announced 10 billion rand to be set aside by the IDC for job creation.To date, about one point five billion rand was approved for 60 companies to promote jobcreation.Compatriots and friends,The mining industry, one of the job drivers in the New Growth Path, plays a critical role in thesocio-economic development of the country.As part of addressing the triple challenge of poverty, inequality and unemployment, governmenthas developed a beneficiation strategy, which seeks to provide opportunities in the downstreampart of the minerals sector.We remain committed to the creation of a favourable and globally competitive mining sector,and to promote the industry to attract investment and achieve both industrial growth and much-needed transformation.Honourable Speaker,
  5. 5. Honourable Chairperson of the NCOP,The work done last year indicates that if we continue to grow reasonably well, we will begin towrite a new story about South Africa—the story of how, working together, we drove backunemployment and reduced economic inequality and poverty.It is beginning to look possible.We must not lose this momentum.For the year 2012 and beyond, we invite the nation to join government in a massiveinfrastructure development drive.Baba Somlomo noSihlalo,Sizoqala umkhankaso omkhulu wokwakha izingqalazizinda ezweni lonke. Lokhu kuzophakamisaizinga lomnotho, futhi kuveze amathuba emisebenzi.Compatriots,We will use the project management expertise gained during the 2010 FIFA Soccer World Cupto make this project a success.The infrastructure plan will be driven and overseen by the Presidential InfrastructureCoordinating Commission, (PICC), which was established in September, bringing togetherMinisters, Premiers and Metro Mayors under the leadership of the President and the DeputyPresident.The PICC has identified and developed projects and infrastructure initiatives from state-ownedenterprises as well as national, provincial and local government departments.These have been clustered, sequenced and prioritised into a pipeline of strategic integratedprojects.We have chosen five major geographically-focussed programmes, as well as projects focusing onhealth and basic education infrastructure, information and communication technologies andregional integration.The projects are as follows;Firstly, we plan to develop and integrate rail, road and water infrastructure, centred around twomain areas in Limpopo: the Waterberg in the Western part of the province and Steelpoort in theeastern part.
  6. 6. These efforts are intended to unlock the enormous mineral belt of coal, platinum, palladium,chrome and other minerals, in order to facilitate increased mining as well as stepped-upbeneficiation of minerals.Using the developments in Limpopo as a base, we will expand rail transport in Mpumalanga,connecting coalfields to power stations.This will enable us to decisively shift from road to rail in the transportation of coal, which hascaused a deterioration of the roads in Mpumalanga.The eastern parts of the North West province will also benefit from the greater focus oninfrastructure connected to mining and mineral beneficiation.Secondly, we will improve the movement of goods and economic integration through a Durban-Free State-Gauteng logistics and industrial corridor.This project is intended to connect the major economic centres of Gauteng andDurban/Pinetown, and at the same time, connect these centres with improved export capacitythrough our sea-ports.In this regard, I am pleased to announce the Market Demand Strategy of Transnet, which entailsan investment, over the next seven years, of three hundred billion rand in capital projects.Of this amount, 200 billion rand is allocated to rail projects and the majority of the balance, toprojects in the ports.Amongst the list of planned projects, is the expansion of the Iron Ore Export channel from 60million tons per annum to 82 million tons per annum.It also includes various improvements to the Durban-Gauteng Rail corridor and the phaseddevelopment of a new 16 million tons per annum manganese export channel through the Port ofNgqura in Nelson Mandela Bay.The Market Demand Strategy will result in the creation of more jobs in the South Africaneconomy, as well as increased localization and Black Economic Empowerment. It will alsoposition South Africa as a regional trans-shipment hub for Sub-Saharan Africa and deliver onNEPAD’s regional integration agenda.We have also been looking at the necessity of reducing port charges, as part of reducing the costsof doing business. The issue of high port charges was one of those raised sharply by theautomotive sector in Port Elizabeth and Uitenhage during my performance monitoring visit tothe sector last year.In this regard, I am pleased to announce that the Port Regulator and Transnet have agreed to anarrangement which will result in exporters of manufactured goods, receiving a significantdecrease in port charges, during the coming year, equal to about 1 billion rand in total.
  7. 7. Thirdly, we will develop a major new South Eastern node that will improve the industrial andagricultural development and export capacity of the Eastern Cape region, and expand theprovince’s economic and logistics linkages with the Northern Cape and KwaZulu-Natal.In the former Transkei part of the Eastern Cape, we are committed to building a dam using theUmzimvubu River as the source, in order to expand agricultural production.In addition, the implementation of the Mthatha revitalization project, which is a Presidentialspecial project, is proceeding very well.Work is at an advanced stage to improve water, sanitation, electricity, roads, human settlements,airport development and institutional and governance issues.Fourthly, in the North West, we will expand the roll-out of water, roads, rail and electricityinfrastructure. Ten priority roads will be upgraded.Fifthly, we see enormous potential along the west coast of the country and need to improveinfrastructure to unlock this potential.Our plans include the expansion of the iron-ore rail line between Sishen in Northern Cape andSaldanha Bay in the Western Cape, which will create large numbers of jobs in both provinces.The iron-ore capacity on the transport-side will increase capacity to 100 million tons per annum.This will allow for the expansion of iron-ore mining over the next decade to feed the developingworld’s growing investment in infrastructure and industrial activities.Compatriots,We have also identified critical social infrastructure projects. These include projects aimed atlaying the basis for the National Health Insurance system such as the refurbishment of hospitalsand nurses’ homes.A total of 300 million rand has been allocated for the preparatory work towards building newuniversities in Mpumalanga and Northern Cape.Another infrastructure project with great potential is South Africa’s bid to host the SquareKilometre Array radio telescope in partnership with eight other African countries. The winningbid will be announced next month. We urge you to support the country’s bid.Lastly, our infrastructure work extends beyond our borders. South Africa champions the North-South Road and Rail Corridor, which is part of the African Union’s NEPAD PresidentialInfrastructure Championing initiative.Work in this regard, comprises various inter-related projects that cover roads and railways,border crossings, energy and information and communication technologies.
  8. 8. Compatriots,The massive investment in infrastructure must leave more than just power stations, rail-lines,dams and roads. It must industrialise the country, generate skills and boost much needed jobcreation.I will convene a Presidential infrastructure summit to discuss the implementation of the plan withpotential investors and social partners.Honourable Speaker, Honourable Chairperson of the NCOP,I would now like to discuss matters relating to the extension of basic services, addressinginequalities, peace and security and social cohesion.I received a lot of valuable correspondence in the run-up to this SONA. Such interaction enablesus keep in touch with our people and their needs.I received an email relating to a housing problem from Mzukisi Mali, a public servant from theFingo area in Grahamstown. He wrote;“In 1994 my income was too high to get an RDP and too low to get abond, this continued until to date. I have three children and mywife is not working.“When I apply for an RDP I am told that I do not qualify and cannot get a bond because I amrisky to the banks...’’Fortunately we have gone some way to address the problem facing Mr Mali and many others.In 2010, we announced a one billion rand guarantee fund to promote access to loans.We are pleased to report that this fund will start its operations in April, managed by the NationalHousing Finance Corporation. The scheme will enable the Banks to lend to people who are in asimilar situation as Mr Mali.In addition, from April, people earning between three thousand five hundred rand andR 15 000, will be able to obtain a subsidy of up to R83 000 from Provinces, to enable them toobtain housing finance from an accredited Bank.Ungalilahli ithemba Mr Mali nabaningi abanye, kuzolunga ngenxa yalomxhaso ozotholakalakohulumeni bezifundazwe, kanye nalomshwalense omusha ozokwenza kubelula kumabhangeukuthi aniboleke imali.Compatriots,
  9. 9. There is an ongoing concern from business and communities about high electricity costs.I have asked Eskom to seek options on how the price increase requirement may be reduced overthe next few years, in support of economic growth and job creation and give me proposals forconsideration.We need an electricity price path which will ensure that Eskom and the industry remainfinancially viable and sustainable, but which remains affordable especially for the poor.However to achieve sustainability, a pact will be required with all South Africans – includingbusiness, labour, municipalities, communities and all customers and suppliers.We must save electricity.For the next two years, until the Medupi and Kusile power stations come into operation, theelectricity system will be very tight.We should all play our part in order to avoid load shedding.To increase energy capacity we will continue searching for renewable energy sources, especiallysolar electricity and biofuels as we implement the Green Economy Accord with economicstakeholders.To date we have installed more than 220 000 solar geysers nationwide.The Government target is one million solar geysers by 2014-2015.Honourable Members,Compatriots,Government continues to extend access to basic water supply. However, clearly, water access isstill a challenge in some areas.An email from Mmatsheko Pine from Hammanskraal is a case in point.The writer says; “There is the area called Ngobi near Hammanskraal, under Moretele LocalMunicipality, the people residing in the area are now old, aged and mostly sick.“The area has been without water for the past two years. People rely on rain to harvest water.There are water pipes and machines installed but the problem is said to be pressure to pumpwater. Could your office kindly assist with the powers that be?”.I have asked the Minister of Water and Environmental Affairs to investigate this matter with aview to finding an urgent solution.
  10. 10. Water expansion has been delayed in some parts of the country due to a lack of infrastructure.This is being attended to. For example, five new water augmentation schemes are on schedule.These are Olifants River Water Resource in Steelpoort in Limpopo Province, the Vaal RiverEastern Sub-System in Secunda in Mpumalanga, Komati Water Augmentation Scheme inNkangala in Mpumalanga, the raising of Hazelmere dam in KwaZulu-Natal and the ClanWilliam Dam in Clan William in the Western Cape. In addition, nine out of 25 dams have beenrehabilitated.In relation to the announcements we made during the United Nations COP 17 climate changeconference, an amount of 248 million rand is to be invested over next two years to deal with theissue of Acid Mine Drainage in Witwatersrand.Let me take this opportunity to congratulate the inter-ministerial committee on COP 17 formaking the conference a huge successThe final outcome of COP 17 was historic and precedent setting, ranking with the 1997conference where the Kyoto Protocol was adopted.Building on the success of COP 17, South Africa will participate in the Rio plus 20 Summit inBrazil, which marks the 10 anniversary of the World Summit on Sustainable Development.Honourable Speaker and Honourable Chairperson,Our intensive focus on education is paying off.We are pleased that the matric percentage pass is on an upward trend. We congratulate theteachers, learners, parents and the communities for the efforts.We will continue to invest in producing more teachers who can teach mathematics, science andAfrican languages.Compatriots,Our call to teachers to be in school, in class, on time, teaching for at least seven hours a dayremains pivotal to success. We thank the teacher unions for supporting this campaign.A major achievement is the doubling of Grade R enrolment, from 300 000 in 2003 to 705 000 in2011. We appear poised to meet our target of 100% coverage for Grade R by 2014.To fight poverty and inequality and to keep learners in school, over 8 million learners attend no-fee schools while over eight million benefit from government’s school feeding scheme.Last year, national government instituted a Section 100 (1)(b) intervention in the Eastern Cape,to assist the department of education to improve the delivery of education.
  11. 11. Problems included non-delivery of textbooks, non-payment of scholar transport, excess teachersand a general poor culture of learning and teaching.The implementation of the intervention will continue and we are working well with the provincein this regard. Sizimisele ukwenza immeko yemfundo ibengcono eMpuma Koloni. We call on allstakeholders to work with us to make this turnaround a success.Compatriots,During the 2010 FIFA Soccer World Cup, we resolved that the South African legacy would be topromote universal access to education.School attendance in the country is now close to 100 percent for the compulsory band, 7-15years of age. But we remain concerned by the report of the General Household Survey in 2010that just over 120 000 children in that band are out of school.Grade 10 drop outs appear to be a problem, particularly in the rural and farm areas of theWestern Cape.The national Government will work closely with the Western Cape government, to trace theselearners and provide support so that they do not lose their future.With regards to higher education, we are exceeding targets. Close to 14 000 learners were placedin workplace learning opportunities over the past year, and over 11 000 artisans have completedtheir trade tests.Siyajabula ukubona ukuthi liyanda inani lentsha efunda amakhono kulamakolishi abizwaphecelezi ngama-Further Education and Training Colleges.Siyaninxusa bazali ukuthi nigqugquzele izingane zifunde kulamakolishi. Akufanele zicabangeukuthi imisebenzi ifundelwa emanyuvesi kuphela.Siyawadinga amakhono atholakala kulamakolishi.To expand access to tertiary education as per our announcement last year, 200 million rand wasutilised to assist 25 000 students to pay off their debts to institutions of higher learning.Compatriots and friends,We congratulate the health sector as well as the South African National Aids Council led by theDeputy President of the Republic on the success of the HIV and AIDS programme.While we are doing well with regards to treatment and the prevention of mother to childtransmission, general prevention efforts must also be accelerated.
  12. 12. We also wish to encourage South Africans to live healthier lives to reduce the impact of non-communicable diseases such as diabetes, heart disease and hypertension.Compatriots and friends,The year 2013 will mark the centenary of the Natives Land Act of 1913, which took away 87percent of the land from the African people.The Constitution requires that the State must realise the restitution of land rights for those whowere dispossessed by the 1913 law.We have only distributed 8% of the 30% target of land redistribution for 2014 that we setourselves. The process is slow and tedious and there is general agreement that the willing buyer-willing seller option has not been the best way to address this question.That is why have introduced a new policy framework, the Green Paper on Land Reform.We urge the public to participate in the process of improving land redistribution and reform toreverse the impact of the 1913 Act.Honourable Speaker,Compatriots,On economic transformation, we are amending the Broad-Based Black Economic EmpowermentAct. The amendments amongst other things, establish a statutory Commission that would dealwith non-compliance and circumvention.The proposed law will also criminalise fronting and other forms of empowermentmisrepresentation.With regards to issues of disability, we have directed all government departments to ensure thatwe meet the target we set several years ago of having 2% of people employed in the PublicService to be disabled persons.We are also working towards aWomen Empowerment and Gender Equality Bill, to promote compliance in both governmentand the private sector and to provide for sanctions in the case of non-compliance.Meanwhile, the NEDLAC Process on the Atypical Forms of Employment and Labour Brokinghas now been completed.Government seeks to eliminate all forms of abusive practices inherent in labour broking, in orderto strengthen the protection of vulnerable workers. We trust that common ground will be foundthis year on this matter.
  13. 13. Compatriots,In 2009 we made a commitment to accelerate the fight against crime and corruption.The crime statistics for the period 2010/2011 indicate that our country witnessed a decline of 5%in the number of reported serious crimes compared to the previous year.We will however, not become complacent. We are continuing to implement our programmes ofmaking South Africans feel safe and to be safe.We also continue to improve the performance of the state in various ways, including the fightagainst corruption.The Multi-Agency Working Group on procurement led by the National Treasury, SARS and theFinancial Intelligence Centre is reviewing the entire state procurement system to ensure bettervalue for money from state spending.Initiatives include the vetting of supply chain personnel in government departments.To further improve security, the Department of Home Affairs, signed a Memorandum ofUnderstanding with the banking industry, to roll out the online fingerprint verification system inall participating banks, to assist in fraud prevention and detection.Compatriots and friends,We are working with various provinces to improve governance, systems and administration.These include Gauteng to improve health service delivery, the Free State on transport and roadsand Limpopo to improve governance and financial administration in five departments, includingthe provincial treasury.We welcome the launch of Corruption Watch by COSATU, as well as the recent agreementbetween government and business to implement anti-corruption programmes.These interventions will complement the work of government in combating corruption.Compatriots and friends,As part of promoting social cohesion, this year we will undertake and continue many heritageprojects.Museums and centres to be unveiled will include the 1980 Matola Raid museum in Maputo, theNcome museum in KwaZulu-Natal, phase 2 of the Freedom Park museum and the Steve Bikoheritage centre in Ginsberg in King Williamstown.
  14. 14. We have also prioritised the homes and graves of former ANC Presidents and other nationalheroes including Thomas Maphikela, Lillian Ngoyi, Walter and Albertina Sisulu, Griffiths andVictoria Mxenge, Robert Sobukwe and others.Memorial sites to be prioritised include that of the Pondo Revolt, the sites of the Frontier Wars,the 1913 revolt by African women in the Free State, the 1957 anti-pass revolt by women inZeerust, the Rocklands Civic Centre in Mitchells Plein where the United Democratic Front wasformed and the Gugulethu Seven monument in Cape Town.We are also in the process of purchasing and rehabilitating the Winnie Mandela house inBrandfort, the Dr. Moroka house in Thaba Nchu and the Bram Fischer house in Westdene.Additional projects include the launch of the Dube Tradeport and the unveiling of the statue ofJohn Dube at King Shaka International Airport next month and renaming the Kings Housepresidential residence in Durban after Dr Dube.The Presidential Guest House in Pretoria will be named after Mr Sefako Makgatho and theDiplomatic Guest House in Pretoria after the late prolific diplomat, Mr Johnny Makatini.Government will also table the National Traditional Affairs Bill which makes provision for therecognition of the Khoi-San communities, their leadership and structures.It is important to remember that the Khoi-San people were the most brutalised by colonialistswho tried to make them extinct, and undermined their language and identity. As a free anddemocratic South Africa today, we cannot ignore to correct the past.I discussed this matter extensively with the Khoi-San community when I met with them in CapeTown last year and we agreed to work together to redress the injustices of the past.Compatriots,Next year 2013, the seat of government, the majestic Union Buildings, will mark 100 years ofexistence and planning will start this year to mark the centenary.Fellow South Africans,We must perform better in sports this year! Our star performer, Oscar Pistorius has set thestandard for the year by winning the 2012 Laureus Sportsperson of the Year with a DisabilityAward. Congratulations for this achievement.We also congratulate the national women’s soccer team Banyana Banyana for qualifying for theLondon Olympics for the first time. With our support, they will do well.We have been given the honour to host the Africa Cup of Nations next year, replacing Libya asthey are unable to do so.
  15. 15. Compatriots,Allow me to use this opportunity to extend heartiest congratulations and good wishes to MamaRebecca Kotane, wife of former ANC treasurer general, Moses Kotane and SACP generalsecretary, who will turn 100 years old on Sunday the 12 of February.The Young Men’s Guild of the Methodist Church of Southern Africa, Amadodana aseWesile, isalso celebrating 100 years this year.Another centenary celebration is that of Omama Besililo of the United Congregational Church ofSouth Africa.We wish them all successful celebrations.Compatriots,We have outlined a busy infrastructure implementation programme for now until 2014 andbeyond.I would like to appeal to all our people to join hands as they always do, as we deal decisivelywith the triple challenges of unemployment, poverty and inequality. Nobody will do this for us, itis in our hands. And we are all equal to the task.As we get back to work tomorrow, let us internalise the words of ANC Women’s Leaguefounding president Charlotte Maxeke who said in her Presidential address to the NationalCouncil of African Women.I thank you.